GST Refund u/s 54 Denied for Failure to Reply to RFD 08 Notice : Madras HC Gives Fresh Chance to Claim [ Read Order]

In a recent ruling, the Madras High Court has directed the GST department to consider the claim of the taxpayer afresh whose refund claim was rejected solely due to non-submission of a reply to a notice in GST Form RFD-08.

The petitioner, M/s.K.L.K.A.International had filed an application for refund inForm RFD-01 dated 22.08.2024, seeking GST refund under Section 54 of the Goods and Services Tax Acts, read with Section 16(3) of the IGST Act, 2017, on account of zero-rated supplies.

However, the claim was rejected by an order dated 11.11.2024 as the petitioner failed to respond to the show-cause notice in GST Form RFD-08 dated 19.09.2024.

JusticeKrishnan Ramasamy observed the petitioner’s contention that the supplies were zero-rated, making the refund admissible in law.

It noted that the rejection was only due to procedural lapse without examining the merits, the Court observed that the petitioner deserved an opportunity to present their case with supporting documents.

Accordingly, the impugned rejection order was set aside and the matter was remanded to the concerned authority for fresh adjudication.

The Court directed the petitioner to file all relevant documents to establish eligibility for refund under Section 54 of the GST Acts read with Section 16(3) of the IGST Act, 2017. The writ petition was disposed of with no order as to costs, and the connected miscellaneous petition was closed.

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